PUNJAB GOVT. GAZ. (EXTRA), DECEMBER 29, 2025 9705
(PAUSA 8, 1947 SAKA)
EXTRAORDINARY
Published by Authority
CHANDIGARH, MONDAY, DECEMBER 29, 2025
(PAUSA 8, 1947 SAKA)
PUNJAB VIDHAN SABHA SECRETARIAT
NOTIFICATION
The 29th December, 2025
No. 27-PLA-2025/65.- The Indian Stamp (Punjab Second Amendment)
Bill, 2025 is hereby published for general information under the proviso to rule
121 of the Rules of Procedure and Conduct of Business in the Punjab Vidhan
Sabha (Punjab Legislative Assembly):-
BILL NO.27-PLA-2025
THE INDIAN STAMP (PUNJAB SECOND AMENDMENT) BILL, 2025
A
BILL
further to amend the Indian Stamp Act, 1899, in its application to the
State of Punjab.
BE it enacted by the Legislature of the State of Punjab in the
Seventy-sixth Year of the Republic of India as follows: -
1. (1) This Act may be called the Indian Stamp (Punjab Second Short title and Commencement Amendment) Act, 2025.
(2) It shall come into force on and with effect from the date of its
publication in the Official Gazette.
( 9705 )
9706 PUNJAB GOVT. GAZ. (EXTRA), DECEMBER 29, 2025
(PAUSA 8, 1947 SAKA)
2. In the Indian Stamp Act, 1899, in its application to the State of
Punjab, in Schedule 1-A, in entry 6,-
Amendment of Schedule 1-A of Central Act 2 of 1899.
(i) under the column, captioned as "Proper Stamp-duty", for the existing
Stamp-duty, the following shall be substituted, namely:-
"0.25 per cent of the loan
amount credited or an existing
or future debts, subject to a
maximum of five lakh rupees.";
and
(ii) in the existing proviso, at the end, for the words and sign "additional
amount." the words and sign "additional amount:" shall be substituted
and thereafter, the following proviso shall be added, namely:-
"Provided further that where more than one instrument is
executed under this entry in respect of the same loan, Stamp-duty
shall be chargeable on total loan amount covering all such instruments
so long as no additional loan amount is secured by any such
instrument(s)." PUNJAB GOVT. GAZ. (EXTRA), DECEMBER 29, 2025 9707
(PAUSA 8, 1947 SAKA)
STATEMENT OF OBJECTS AND REASONS
The Indian Stamp Act, 1899 was enacted to provide for the levy and collection
of stamp duty by the State Government. The Act contains provisions for the
effective administration of stamp duty on various instruments executed within
the State.
In order to make Punjab a more industry-friendly State and to rationalize duty
under Entry 6 of Schedule 1-A of Indian Stamp Act, 1899, it has been considered
necessary to streamline the existing framework. The proposed amendment
seeks to rationalize the levy of duty on instruments relating to deposit of title
deeds, hypothecation and equitable mortgage, thereby improving ease of doing
business in the State.
At present, separate stamp duty is chargeable on equitable mortgage and on
hypothecation for the same loan transaction, which results in duplication of
levy and increases the financial burden on borrowers. The amendment seeks
to remove this anomaly by prescribing a single levy of stamp duty at a uniform
rate on the total loan amount, subject to a reasonable upper cap, and by ensuring
that duty is charged once on the total loan amount no additional stamp duty is
charged on additional instruments executed in relation to the same loan, where
no additional debt is created.
The proposed reform will reduce transaction costs, facilitate smoother credit
operations, particularly for MSMEs, and contribute towards creating a more
enabling business environment in the State.
To give effect to the above objectives, it is proposed to amend the Indian
Stamp Act, 1899.
HARDIP SINGH MUNDIAN,
Revenue, Rehabilitation &
Disaster Management
Minister, Punjab.
9708 PUNJAB GOVT. GAZ. (EXTRA), DECEMBER 29, 2025
(PAUSA 8, 1947 SAKA)
FINANCIAL MEMORANDUM
The Bill seeks to amend Entry 6 of Schedule 1-A of the Indian Stamp Act,
1899 with a view to rationalizing the levy of stamp duty on instruments relating
to deposit of title deeds, hypothecation and equitable mortgage. The proposed
amendment aims to enhance the ease of doing business in the State by
eliminating the duplication of stamp duty on the same loan transaction and by
prescribing a single, capped levy on the total loan amount. This measure will
simplify compliance, reduce transaction costs, and facilitate smoother access
to credit for businesses, particularly MSMEs, thereby supporting industrial
development and economic growth in the State.
The amendment is expected to result in a reduction of annual stamp duty
receipts from these instruments. However, as the Bill does not envisage any
provision that would result in recurring or non-recurring expenditure from the
Consolidated Fund of the State, the enactment of this Bill will not entail any
direct financial implications for the State Government.
____________
The Governor has, in pursuance of clause (1) and (3) of Article 207 of
the Constitution of India, recommended to the Punjab Legislative Assembly,
the introduction and consideration of the Bill.
____________
CHANDIGARH R.L. KHATANA,
THE 29TH DECEMBER, 2025 SECRETARY.
3595/12-2025/Pb. Govt. Press, S.A.S. Nagar